Motor Fuel Group considers £2.5bn deal for rival MRH

A PETROL powerhouse could be in the making after it emerged that Motor Fuel Group is eyeing a £2.5bn merger with rival MRH.

A deal could create a company with almost 900 forecourts across the country at a time when retailers such as Marks & Spencer and Morrisons are increasingly considering petrol stations as a less expensive means to expand.

MRH, which is owned by Texas private equity firm Lone Star, has 450 sites across the country, branded as BP, Esso and Shell.

The company is already working with advisers at Citi, JP Morgan and Numis about a potential £1.5bn stock market listing this year. However, the company is now considering a sale, according to Sky News, which first reported Motor Fuel Group’s (MFG) interest.

MFG could also face competition from rival Euro Garages should MRH not press ahead with its listing. Lone Star has reportedly given bidders a Monday deadline.